Maharah Human Resource retail offering starts today

08/05/2019 Argaam

 

Maharah Human Resource Co. will offer 1.125 million shares, or 10 percent of its initial public offering (IPO) to retail investors today at SAR 69 per share.

 

The Capital Market Authority (CMA) approved on March 31, 2019 Maharah’s request to float 11.25 million shares, or 30 percent of capital.

 

Maharah allocated 10.125 million shares, or 90 percent of the total offering size to institutional investors and funds, and 10 percent for retail investors.

 

The IPO is the second offering on Tadawul since the beginning of this year, after Al Moammar Information Systems Co. launched its public offering in March.

 

The retail offering will be held from today, May 8 to May 14.

 

The offering to institutional investors ended recently and it was 904 percent oversubscribed.

 

The company was established in 2013 under Maharah Foreign Recruitment Co. with SAR 100 million in capital to provide foreign recruitment services to both the public and private sectors.

 

The firm changed to its current name in 2017, and increased capital in December 2018 to SAR 375 million.

 

Maharah has 18 branches across the Kingdom, in addition to its main offices in Riyadh and a sales office in King Saud University.

 

The firm fully owns a subsidiary Musanid for Cleaning Services in the in United Arab Emirates, and has acquired a 40 percent stake in Cayman Islands’ Bloovo Ltd. Both subsidiaries account for 5 percent of Mahara’s assets, revenue and liabilities.

 

It plans to expand in both the Kingdom and United Arab Emirates.

 

Company Profile

Company

Maharah Human Resources Co.

Stock market

TASI- Main Market

Company’s core business

Recruiting manpower and providing household workers

Company’s status

Active

Company’s capital

SAR 375 mln

 

IPO Details

IPO Percentage

30%

Number of IPO shares for retail investors

1.25 mln shares represent 10% of total IPO shares of 11.25 mln

IPO price per share

SAR 69

IPO size for retail investors

SAR 77.63 mln

Eligible investors

Saudis and GCC investors

IPO minimum for retail investors

10 shares

IPO maximum for retail investors

250,000 shares

IPO period

From May 8, 2019 until May 14, 2019

Allotment

May 21, 2019

Surplus repayment

May 21, 2019

Additional Details

Lead manager & Financial advisor

Samba Capital

Receiving bank

Samba, Al Rajhi, NCB, SABB, BSF and Riyad

 

Major Shareholders After IPO

Shareholder

Number of shares before IPO (‘000)

Stake %

Number of shares after IPO (‘000)

Stake %

Al Ahlia Global Real Estate Investment

10.41

27.76 %

7.29

19.43 %

Architectural Experience

8.55

22.81 %

5.99

15.97 %

Al Faisaliah Holding Group

7.50

20.00 %

5.25

14.00 %

Abdullah Al Amro

6.54

17.43 %

4.58

12.20 %

Sulaiman Al Habib Commercial Investment Co.

3.75

10.00 %

2.63

7.00 %

Others*

0.75

2.00 %

0.525

1.40 %

Public

--

--

11.25

30.00 %

Total

37.50

100.00 %

37.50

100.00 %

* Each owns less than 5% stake

 

Recent IPOs

Company

IPO price

(SAR)

Number of shares for retail investors

(mln share)

Coverage ratio %

(retail)

2019

Al Moammar

45

0.71

149%

2018

National Learning

19

1.30

327 %

Leejam

52

1.57

245 %

2017

Al Waha

51

0.9

263 %

2016

L’Azurde

37

3.87

293 %

Al Yamamah Steel

36

4.57

479 %

Saudi German Hospital

64

8.28

274 %

2015

Alandalus

18

8.40

464 %

SGS

50

22.60

339 %

SACO

70

2.88

620 %

MEPCO

30

6.00

473 %

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